How Farmers Diverted FG Loans Into BDC, Oil Sector-Bashir Ahmad

Bashir Ahmad, former Special Assistant on Digital Communications to the late President Muhammadu Buhari, has revealed that several intervention programmes designed to support farmers under the previous administration were “grossly abused.”

Ahmad made the disclosure on Monday via a post on X (formerly Twitter), in response to a comment by one Yakubu Wudil, who had criticized the federal government’s decision to offer import waivers as part of its strategy to curb rising food prices.

Wudil had argued that rather than encouraging food importation, the government should prioritize agricultural subsidies, particularly for fertilizer, gasoline, and modern farming equipment.

In his response, Ahmad noted that many of those interventions were already implemented during Buhari’s tenure, citing the Anchor Borrowers’ Programme (ABP) as a key example. Launched in 2015, the ABP was designed to link anchor companies involved in agricultural processing with smallholder farmers (SHFs) producing key commodities.

According to the Central Bank of Nigeria (CBN), the programme disbursed over N1.09 trillion by 2023. Ahmad explained that the funds were intended to promote food security, reduce poverty, and create employment opportunities.

“Some farmers received loans running into billions — in some cases as high as N6 billion — but rather than invest in agriculture, many diverted the funds to sectors like oil and gas, bureau de change operations, and other luxury ventures,” Ahmad wrote.

He added that those who did engage in farming often hoarded their harvests, waiting for prices to spike before selling — a move that undermined the programme’s goals and burdened consumers.

In 2023, the International Monetary Fund (IMF) reported that only 24 percent of ABP loans had been repaid. The CBN, however, countered the claim, asserting that the repayment rate stood at 52 percent.

Ahmad also commented on the controversial border closure policy introduced under Buhari, stating that while the policy was intended to stimulate local production, it was largely misunderstood and unjustly criticized.

“Even when signs of success were evident — such as the drop in rice importation and the lifting of many Nigerians out of extreme poverty — the policy was still widely attacked,” he said.

According to him, the biggest failure lay not in the policies themselves, but in the conduct of their beneficiaries.

“The unfortunate truth is that the beneficiaries failed both the government and the people. Instead of stabilizing food prices, they formed cartels, manipulated supply chains, and created artificial scarcity to maximize profit.”

He also revealed that many of these individuals are currently under investigation by the Economic and Financial Crimes Commission (EFCC).

Despite expressing reservations about food import waivers, Ahmad said he supports the current administration’s decision as a necessary short-term measure.

“It shouldn’t be the go-to option, but given the betrayal of trust by key players in the local value chain, it has become the only immediate relief available to reduce hunger and suffering,” he stated.

Ahmad concluded by emphasizing the importance of reviving and properly monitoring agricultural interventions to ensure long-term food security.

“The people need to eat first. In the long run, we must return to properly managed, corruption-free agricultural support systems,” he added.